MTWARA DEVELOPMENT CORRIDOR

ANCHOR PROJECT PROFILE

 MCHUCHUMA COLLIERY AND THERMAL POWER DEVELOPMENT

 PROJECT OBJECTIVE

The MTWARA DEVELOPMENT CORRIDOR (MtDC) is a Spatial Development Initiative (SDI) which has the backing of the 4 countries directly affected namely Tanzania, Malawi, Zambia, Mozambique. The development endeavours of the MtDC are being guided by SATCC-TU under the framework of SADC.

The corridor runs for approx. 850 km from Mtwara in the east (Indian ocean port) to Mbamba Bay or Manda in the west (Lake Nyasa).

The anchor project is the Colliery, the Thermal Power Station both in the Mchuchuma  area with its supporting infrastructure.

Tanzania is endowed with about 300mt of proven coal reserves. Among the 10 coalfields of Tanzania, Mchuchuma-Katewaka Coalfield has been explored to the great extent. Mchuchuma-Katewaka coalfield has a total reserve of 536mt of which 159mt is proven category (Mchuchuma - 125mt and Katewaka - 34mt). The coal seams are of superior thermal quality and are essentially non-coking.

Reliable and cost effective power is absolutely vital for the development for the fast growing mining industry and subsequently the Tanzanian Economy. Feasibility studies carried by NDC have amply demonstrated that the Mchuchuma Colliery and Thermal Power Station project is technically feasible and financially viable and will ensure diversified, reliable and sustainable power supply to meet the base load demand of various sectors of economy.

 Electricity generation is mainly based on hydro resources and partly thermal power from diesel engines. Installed generation capacity (1998) on the transmission grid amounted to 524MW with non grid generating capacity amounted to 28.7MW. Of the total installed capacity 552.7MW approx. 68% (377MW) is supplied by hydro and rest by thermal systems. The above figure are sourced from the official Power System Master Plan.

During the draught of 1992 - 1997, the hydropower dropped significantly and the grid system experienced a lot of capacity and energy shortages which called for intervention measures involving massive load shedding and severe power cuts, thus badly affecting all sectors on the economy.

Diesel based power generation apart from being costly, is a continuous drain of the scarce foreign exchange reserves. Other options are to import power from other utilities in the region however this also impacts negatively on the forex reserves of Tanzania.

 Large-scale private investment into Tanzania is being withheld or minimized due to the unreliable power supply. Investment that are being made are not reaching full potential due to enormous operational costs involved in running a diesel generator set for their power requirements.

 Therefore the main thrust of the government for Tanzania's power sector development efforts are geared towards the provision of cost effective and economical power for the predicted loads but at the same time reduces the over dependence on hydro sources and increase utilization of the other indigenous resources. Coal and natural gas reserves allow for such diversification. Studies have indicated that in the medium to long - term these resources are able to provide adequate, sustainable, reliable and appropriately priced electricity. During periods of draught security and balance at different resources can be maintained and exploited in an optimum way to avoid dependence on one source.

In this context, the Government of Tanzania has via it's various Ministries mandated the National Development Corporation (NDC) to develop the surface coal mine at Mchuchuma-Katewaka coalfield and setting up of a coal - fired power station linked to this coal mine

The objective is to establish an opencast coalmine of 1.5 mty at Mchuchuma - Katewaka and setting up of  a 400MW linked (minemouth) thermal power station near the coal mine and all the supporting infrastructure as the anchor project of the MtDC.

The mining industry of Tanzania currently in the infancy stages (Fig 1) will reap great cost and production benefits from this provision of power and subsequent ripple effect on other downstream industries will create an unprecedented economic boom in Tanzania.

The project will also facilitate the employment of existing natural resources, diversification of power sources, ability to earn forex as well as creation of thousands of direct and indirect employments.

The socio economic development of local region, Tanzania and the neighbouring SADC countries will receive a substantial boost from the impact of this project.

The other projects currently identified in the MtDc (Fig. 2) are dependent on the anchor projects.

ANCHOR PROJECT AND SUPPORTING INFRASTRUCTURE STATUS

(Indexed as per fig 2)

1.                   MCHUCHUMA - KATEWAKA COAL MINE

Detailed feasibility study completed including Environmental Impact assessment 

Private developer/owner identified 

Reserves:       Proven Category        158.80 million tons    (11.74km²) 

                       Indicated category      376.95 millions tons  (24.53km²) 

                        Total                        535.75 millions tons 

2.                  MCHUCHUMA THERMAL POWER STATION

Detailed feasibility study completed including Environmental Impact assessment 

Private developer/owner identified

Key Features:       4 x 100MW 

                              Circulating Fluidized Bed Combustion (CFBC) Technology 

                              Coal Supply via cross-country Conveyor System 3km 

                              1.38 million tons of coal per year 

                              Water 3200 m³ per hour from Katewaka river 18km

                              Ash disposal in slurry form

3.                   MANDA VILLAGE

Pre feasibility study completed

Private developer/owner identified

Key Features:       400 dwellings

                              High, medium, singles quarters and low cost housing

                              600 site and services stands 

                              Water, sewerage, telephone and electricity services 

                              Situated on the shores of Lake Nyasa +- 30 km

                             from coalfield

                              High potential for tourism 

4.                   TRANSMISSION SYSTEMS 

Pre feasibility study completed. Cost estimates in progress. 

Key Features:      280 km Mchuchuma to national grid at Mufindi

                             200 km Mchuchuma to national grid at Makambako 

                             400 km Mchuchuma to Mbeya 

                             700 km Mbeya to south Lakes region for mining  activities

                             System voltages 220 kV or 330kV 

                             Electrification project at Songea and Mbinga districts being

                             considered  by a German donor agency

5.                   MTWARA PORT 

Master plan for expansion completed. Feasibility study proposal in progress

Key Features:      One of three major ports currently existing

                             Basin currently accommodates 6 vessels of 175m length

                             Quay wall currently accommodates 2 ship + 1 tug vessel

                             400,000 MT imports and exports per annum current

                             capacity

                             Expansion plans include doubling the above 

                             Capacity to 1,000,000 MT without having to extend the

                             quay wall 

                 EPZ planned at this port (676 ha and 1970 ha) 

6.                   MTWARA AIRPORT

Feasibility study completed for upgrade to international standard 

Further study required in order to anticipate the requirements of the MtDC

Key Features:      2258 Runway length

                             ATC Boeing 737 landing 3 times per week

                             Current annual traffic is approx. 20,000

                             Construction of a new passenger apron and renovations to

                             the terminal building is currently underway

7.                   MBAMBA BAY PORT

Pre feasibility completed

Key Features:      Customs and immigration facilities available

                             Links Nkatha Bay (Malawi) to Tanzania

                             Major route connection between the two countries

                             Development would trigger movement of goods for import

                             and export and create an import/export corridor for Malawi

                            MALAWIAN exports would include sugar, tea, tobacco,

                            coffee, timber and 100,000 MT of coal per annum.

8.                   UNITY BRIDGE AND FERRY CROSSING

Pre feasibility study and cost estimates completed

Key Features:      Situated on Ruvuma River (boarder between Mozambique

                            and Tanzania ) and thus will facilitate traffic between the

                            two countries. The region has cashew nuts, sugar, tea and

                            fresh produce export potential.

                      Total span length of approx. 650m

9.                   MTWARA TO MBAMBA BAY ROAD UPGRADE

Study and cost estimates completed

Key Features:      883 km long

                             Links Tanzania, Malawi and Mozambique

                             Will facilitate traffic movement within the corridor and to

                             external market s for both trade and tourism

                       Road can be divided into 5 sub divisions

                       Mtwara to Masasi                 214km

                       Masasi to Namgomba            43km

                       Namgomba to Tunduru          165km

                       Tunduru to Songea                284km

                       Songea to Mbamba Bay         177km

10.               OTHER IDENTIFIED PROSPECTS

Studies or exploration currently underway for:

                  Other coal fields

                  Iron Ore

                  Iron and Steel complex

                  Gold and Other base metals

                  Gemstones

                  Uranium

                  Gas

                  Cashew nuts and other oil crops

            Livestock Development

                  Tourism (Game reserves, World Heritage Sites, Archeology,

                  Paleontology, water sports, fishing, etc)